Skeena Announces Maiden Resource for Snip

             

 

 

 

 

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 23 July 2020

Skeena Resources Announces Maiden Resource for Snip

 

 

Hochschild Mining PLC ("Hochschild" or "the Company") is pleased to report that its partner, Skeena Resources Limited ("Skeena"), has recently achieved a maiden resource at their 100%-owned Snip Gold Project ("Snip") in northwest British Columbia, Canada.

 

Hochschild notes the release of an announcement titled "Skeena Announces Maiden Resource for Snip Gold Project" from 21 July 2020. Selected text of the release is included below.[1]

 

As a reminder, in September 2018, Skeena granted Hochschild an option to earn a 60% undivided interest in Snip by spending twice the amount Skeena had spent since it originally optioned Snip from Barrick. Under the Heads of Agreement agreed between Skeena and Hochschild, Hochschild had three years from the closing (by 16 October 2021) to provide notice to Skeena that it wished to exercise its option. Once exercised, Hochschild shall have three years to:

 

·      incur expenditures on Snip that are no less than twice the amount of such expenditures incurred by Skeena from March 23, 2016 up until the time of exercise of the Option by Hochschild. (As of June 30 2020, Skeena had incurred C$18.9 million of expenditures at Snip);

·      incur no less than C$7.5 million in exploration or development expenditures on Snip in each 12-month period of the Option Period; and

·      provide 60% of the financial assurance required by governmental authorities for the Snip mining properties

 

Snip Underground Resource Estimate

The underground constrained Indicated resources include 244,000 ounces of gold hosted within 539,000 tonnes at an average gold grade of 14.0 g/t Au. Resources within the Inferred category include 402,000 ounces of gold hosted within 942,000 tonnes at an average gold grade of 13.3 g/t Au (Table 1). In the determination of reasonable prospects for economic extraction, long hole stoping is contemplated. Sensitivities to the gold cut-off are presented in Table 2.

 

Table 1: Snip Indicated and Inferred underground resources reported undiluted at a 2.5 g/t Au cut-off grade within stope optimised mining shapes.

	Domain	Tonnes               (000)	Contained Grade Au (g/t)	Contained Metal   Au (000 oz)
Indicated Mineral Resources
	Main - V	165	12.8	68
	Main - S	337	15.0	163
	Twin West	37	10.4	12
Total Indicated		539	14.0	244
Inferred Mineral Resources
	Main - V	287	13.1	121
	Main - S	599	13.4	258
	Twin West	56	12.4	23
Total Inferred		942	13.3	402

 

Table 2: Snip Indicated and Inferred Resource sensitivities to block cut-off grade

	Cut-Off Grade Au (g/t)	Tonnes               (000)	Grade                   (g/t)	Ounces              (000)
Indicated Category
	>2	557	13.7	245
	>2.5 (reported)	539	14.0	244
	>3	518	14.5	242
	>3.5	495	15.0	239
Inferred Category
	>2	977	12.9	404
	>2.5 (reported)	942	13.3	402
	>3	911	13.6	399
Total Inferred	>3.5	880	14.0	396

 

Next steps

A technical report will be filed on the Skeena's website within 45 days of the 21 July 2020 press release. Skeena intends to commence drilling at Snip shortly to follow-up on the first campaign from 2019 with the aim of expanding the resource.

 

Please also refer to the original Skeena press release for Snip Mineral Resource Estimate Notes and a description of the Snip Mineralisation.

https://www.skeenaresources.com/news/skeena-announces-maiden-resource-for-snip-gold-project

 

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Enquiries:

 

Hochschild Mining PLC

Charles Gordon                                                                                                                                                                                                                              +44 (0)20 3709 3264

Head of Investor Relations

 

Hudson Sandler

Charlie Jack                                                                                                                                                                                                                                      +44 (0)207 796 4133

Public Relations

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About Hochschild Mining PLC

Hochschild Mining PLC is a leading precious metals company listed on the London Stock Exchange (HOCM.L / HOC LN) with a primary focus on the exploration, mining, processing and sale of silver and gold. Hochschild has over fifty years' experience in the mining of precious metal epithermal vein deposits and currently operates three underground epithermal vein mines, two located in southern Peru and one in southern Argentina. Hochschild also has numerous long-term projects throughout the Americas.

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LEI: 549300JK10TVQ3CCJQ89

 

 

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